Mr. Handyman: Licensed and Insured for your Protection

Licensed, bonded, and insured. We see it in advertisements and hear it
on radio and TV spots. Yet many are unsure exactly what these terms mean
or how they can protect homeowners from unscrupulous or incompetent contractors.

Licensing: Many states require both residential and commercial builders and contractors
to be licensed. There are separate licensing requirements for residential,
mechanical (plumbing, electrical, HVAC), and general contractors.

Insurance: This is the most familiar of the three requirements, but there are differences
from what most understand as insurance. Workers' compensation is vital
to protect homeowners from liability for injuries incurred by workers
when present in their homes. Commercial General Liability insurance (GCL)
protects the homeowner for bodily injury, property damage, or personal
injury. In the event there would be damage or loss to a home or structure
due to a contractor's negligence, the homeowners' property insurance
may not be in force. It would be necessary for General Liability Insurance
to offer the coverage.

While the license is issued by the state, the bond and insurance is backed
by an insurance carrier. Contact information, for verification purposes,
is listed on the insurance certificate; as is the expiration date of the
policy. Ask to see licenses, bonds, and certificates of insurance if you
have any doubts about the contractor you're thinking of doing business
with. Reputable companies like Mr. Handyman are happy to provide proof
of their adherence to the laws and regulations designed to make certain
that contractors, employees, and homeowners are protected during the completion
of a project.

In these tough economic times, homeowners need the protection offered by
properly credentialed contractors. Service providers that are willing
to cut corners on licensing, bonding and insurance are much more likely
to cut corners when working at your home. If you know a friend, relative
or neighbor with a contractor/project horror story at their home, more
often than not the issues occurred with an un-credentialed contractor.
You should protect yourself.